A new consumer survey suggests price is the biggest factor for content consumers who have cut the cord.
TV tech company TiVo surveyed 3,330 people in the United States and Canada for its latest quarterly report on online video and pay TV trends.
Most North American respondents (85.2%) were current pay TV subscribers. But among non-subscribers, 18.9% had cut service in the last 12 months, and 52.7% had been without traditional television for longer than one year — which TiVo said is an indication that service retention is crucial, since those who cut are not likely to return.
For those who cut service, price was the biggest factor, with 86.7% saying they cut the cord because pay TV was too expensive (up from 80.1% in the same quarter of 2016).
While there is likely correlation between the price barrier and OTT offerings (Netflix, for example, offers a subscription package at $8.99 per month, compared to the average cable subscription that reaches over the $60 mark), getting shows through non-traditional means seemed to play less of a factor in this study period. Respondents who said they got rid of pay TV because they used a streaming service were at 39.7% – a 8.6% decline year-over-year.
The number of consumers saying they preferred the binge-watching that OTT services provide, as well those who said they preferred online-original shows also decreased from last year.
Price is a factor for people who continue to subscribe to pay TV as well. Of current subscribers, 16.2% of respondents said they were unsatisfied with their current service, with the top reason cited by 83.1% of dissatisfied respondents being that it was too expensive or that fees had increased. Dissatisfaction also increased, up 14.3 percentage points over the last two years.
The majority of the “unsatisfied” respondents (55.3%) told TiVo that they would keep their existing pay TV package “only” if they could choose and pay for exactly the channels that they wanted (this went down slightly from Q3, which was 58.4%).
(From Media In Canada)